How Starbucks loses money and opens new shops at the same time

With Starbucks UK reporting losses of £41 million last year and blaming minimum wage, you might think it was unprofitable to sell coffee in the UK due to tax and regulations.

You might also wonder why Starbucks UK is opening new shops.

The answer is that Starbucks UK paid Starbucks, the owner of Starbucks UK, £40 million last year to use the name Starbucks. This created a £13 million tax credit in the UK, while transferring tens of millions outside of UK tax jurisdiction.